Move Is a Sign Auto Maker Is Using Recall as Opportunity to Sell New Vehicles

General Motors Co. is doubling-down on its own version of a "cash-for-clunkers" program, offering owners of cars involved in the ignition-switch recall the same deep discounts to buy a new car usually given only to company employees.

The move is the latest sign that GM, spurred by feedback from its dealers, is shrugging off its initial reluctance and using the recall as an opportunity to sell new vehicles. Employee pricing...